2019 2018 2017 IRAs IRA Contribution Limit $6,000 $5,500 $5,500 IRA Catch-Up Contributions 1,000 1,000 1,000 IRA AGI Deduction Phase-out Starting at Joint Return 103,000 101,000 99,000 Single or Head of Household 64,000 63,000 62,000 SEP SEP Minimum Compensation 600 600 600 SEP Maximum Contribution 56,000 55,000 54,000 SEP Maximum Compensation 280,000 275,000 270,000 SIMPLE […]
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Health Savings Account Limits for 2019
For 2019 Self-Only HDHP* coverage […]
Read more...New Tax Brackets in 2018
The 2017 Tax Cuts and Jobs Act revised some foundational deductions, exemptions, and tax brackets for the 2018 tax year. Here’s a rundown of what’s changed in that area for individuals: Exemption On your 2017 1040 tax return, you likely received an exemption of $4,050 per person. Check line 42 of your own return. In […]
Read more...Separation and Divorce: When It Comes to Taxes, Breaking Up Can Be Hard to Do
Not much is harder in life than going through a separation or divorce. Figuring out how to handle your taxes before, during, and after a divorce is right up there with the most difficult of challenges. So, before you make big moves to separate or divorce, know the potential tax consequences, and take steps to […]
Read more...Is Your Business Considered a Hobby by the IRS?
Very frequently tax preparers are asked to provide clarification on IRS rules that they heard from a friend, neighbor or colleague. Usually some part of the statement is true; however, there is always more to the story or it may not apply to that person’s specific situation. If you’ve heard the statement, “You can’t deduct […]
Read more...New Tax Bill Highlights for Businesses
As I am sure you are aware, significant tax legislation was passed and signed into law at the end of last year. Most of the changes take effect in 2018, except where noted. These are changes that affect businesses. If you are looking for changes that affect individuals, go to our website and click “Taxes” […]
Read more...New Tax Bill Highlights for Individuals
As I am sure you are aware, significant tax legislation was passed and signed into law at the end of 2017. Most of the changes take effect in 2018, except where noted. These are changes that affect individuals. I will address changes for business owners in a separate post. This is not meant to be […]
Read more...Income Shifting: SAVE Thousands in Taxes
Want to save money in taxes WITHOUT working harder? One way is to shift income from a higher bracket taxpayer to a lower one or even a zero rate-bracket. Typically, splitting the income between family members by hiring them to work in the business will save thousands in taxes. An example is shifting income to […]
Read more...Five Tips to Make Tax Time Less Painful
Tax time is probably not your favorite time of year, especially if you have to pay the government your hard-earned dollars. Here are five tips on how we can make it just a bit less painful. Have patience. Practicing patience will go a long way when you’re dealing with taxes. Keep in mind that for […]
Read more...Failure to File and Failure to Pay: Are You Headed for T-R-O-U-B-L-E?
The old saying goes, “There are only two certainties in life: death and taxes.” Have you ever wondered what would happen if you filed your tax return late or worse, did not file at all? Well, you are looking for trouble if you do not file your tax return. If you do not file an […]
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